![]() When performing an audit, auditors will look to see that they can gain assurance over a process by focusing on four main types of internal controls. What Are the 4 Different Types of Controls? In the next section, we will review control definitions and internal control examples. What are Internal Controls?Īccording to the Executive Summary of the Internal Control – Integrated Framework from the Committee of Sponsoring Organizations (COSO), an “internal control is a process, effected by an entity’s board of directors, management, or other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.” The main goal of having internal controls is to set up key points in a process, which allows companies to track progress and sustainability of performance. Finally, we will also discuss how auditors rely on internal controls and how understanding that can help a company prepare for an upcoming SOC 1, SOC 2, HIPAA, or another type of audit. In this post, we will discuss the definition of controls and examples of the different types of internal controls used to support business processes. Additionally, internal controls allow auditors to perform tests to gain assurance that a process is designed and operating properly. Internal controls (which include manual, IT-dependent manual, IT general, and application controls) are essential process steps that allow for one to determine or confirm whether certain requirements are being done per a certain expectation, law, or policy.
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